"Overall the data still point to modest expansion. The property downturn remains the biggest downside risk to growth. We continue to expect more monetary easing from the PBOC in order to steady the recovery."
- HSBC
Growth in the manufacturing sector of China is likely to increase in the nearest future, keeping country's economy away from uplifted volatility and downturns on the global market. The benchmark purchasing managers' index from the HSBC Bank in Hong Kong rose to 50.5 points in September, pointing on a rise in activity of this particular sector of national economy. Economists expected a decline to 50 points from 50.2 in August. A reading above 50 points indicates expansion, while a number below this mark suggests a decline. Recently, the Chinese government announced a series of new measures to heat up economic growth in the country, which may reach as low as 7.5% this year. Program includes liquidity injections into the financial system and building railways. As the Eurozone's and Japanese economies are stagnating, China and the U.S. are going to remain the growth engines in the foreseeable future. Still, a present reading of the PMI in China indicator means a subdued pace of activity advance, while the biggest share of this month's jump was provided by surging new orders for internal and export markets. As one more sign of recovery, Chinese exports volumes climbed to a record number last month. At the same time, many concerns of economists are linked with the property market, which was one of the fastest-growing in recent years. However, the government data for August showed that housing prices declined in 68 out of 70 major cities.
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